```

[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5086 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 5086

To authorize the Secretary of Agriculture to establish a pilot program 
 to evaluate the feasibility of county-based rural development boards, 
develop a strategy for adoption of national rural development goals and 
    objectives, establish a training program for local county board 
     leaders, providing roles and responsibilities for State rural 
  development councils, substate regional organizations, and 1862 and 
    1890 land grant institutions, and establish a grant program for 
 financing various rural and small community development initiatives, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 1994

 Mr. Baesler introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
To authorize the Secretary of Agriculture to establish a pilot program 
 to evaluate the feasibility of county-based rural development boards, 
develop a strategy for adoption of national rural development goals and 
    objectives, establish a training program for local county board 
     leaders, providing roles and responsibilities for State rural 
  development councils, substate regional organizations, and 1862 and 
    1890 land grant institutions, and establish a grant program for 
 financing various rural and small community development initiatives, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) rural America has serious problems in need of 
        attention, including lack of off-farm opportunities, lack of 
        adequate capital for investment, nondiversity of agriculture 
        economy, declining farm work force, outmigration of rural youth 
        to urban centers, inadequate leadership development, and 
        persistent poverty;
            (2) Federal and State policies dealing with nonfarm rural 
        issues are fragmented;
            (3) farming remains a most important element of rural life, 
        but a successful national rural policy must address the entire 
        spectrum of social, economic and cultural needs of citizens 
        living in rural America;
            (4) the creation of jobs and expansion of existing 
        businesses are of vital importance to the long-term stability 
        of rural life;
            (5) Americans have a right to choose a rural life, beyond 
        just farming, and consisting of a life of opportunity in small 
        communities with continued ties to the land; and
            (6) because each rural area across America is unique, there 
        is no solution which can equally address all rural areas, and a 
        Federal initiative in rural development is dependent on 
        creating a mechanism which allows for locally determined 
        initiatives, strategies, and solutions.
    (b) Purposes.--The purposes of this Act are to--
            (1) establish a pilot program--
                    (A) to create and evaluate the feasibility of using 
                county-based rural development boards as the local 
                organizational entity through which the United States 
                Department of Agriculture will facilitate funding of 
                rural development initiatives;
                    (B) to determine whether county boards can be used 
                to create an understandable initiative under which a 
                comprehensive national policy for rural development can 
                be devised, and create a long-term viable local 
                constituency for development by tapping the energy and 
                talent at the local level;
            (2) establish a time frame, process, and evaluation 
        procedure for the development of clear national rural 
        development goals;
            (3) provide for (through the encouragement of funding) an 
        expanded and more focused role in rural development for Land 
        Grant Institutions both the ``1862'' and ``1890'' colleges and 
        universities;
            (4) create a grant program to provide funding for rural 
        development projects;
            (5) create a national training program bringing the 
        expertise and knowledge of officials of the Department of 
        Agriculture directly to local county development board leaders, 
        State rural development councils, substate regional 
        organizations, and 1862 and 1890 land grant institutions at the 
        start of the pilot project; and
            (6) provide for a coordinated program of cooperation among 
        the Department of Agriculture, State rural development 
        councils, substate regional organizations, and local boards.

SEC. 2. GRANTS TO COUNTIES FOR RURAL DEVELOPMENT.

    (a) Applications.--
            (1) In general.--A qualified county rural development board 
        may apply to the Secretary for grants for the purposes 
        described in subsection (b).
            (2) Contents.--Each application submitted under paragraph 
        (1) shall include the following:
                    (A) A description of the board.
                    (B) A description of the process by which board 
                members are selected, including a discussion of how the 
                process meets the requirement of section 2(5).
                    (C) A description of the process used for rural 
                development strategic planning.
                    (D) A ranking of the priorities of the county for 
                which the board is established.
                    (E) A complete assessment of the resource base of 
                the county.
                    (F) A complete description of each rural 
                development project that the board plans to carry out 
                during the 1st 3 years of the grant, including--
                            (i) a timetable for completion of the 
                        project; and
                            (ii) the goals and expectations of the 
                        project, including a discussion of how the 
                        project would build on the resource strengths 
                        of the county for which the board is 
                        established, or correct or moderate resource 
                        weaknesses of the county.
                    (G) A detailed budget for each rural development 
                project that the board plans to carry out during the 
                1st year of the grant, which shall indicate the amount 
                of funding for the project, all other sources of funds 
                for the project, and the approval status of such other 
                sources of funds.
                    (H) A description of how each such project will 
                address regional needs and goals, as identified by 
                regional planning or economic development districts, 
                rural development councils, or economic development 
                offices of the State in which the county for which the 
                board is established is located.
            (3) Deadline.--The Secretary may not consider an 
        application for grants under this section for a fiscal year if 
        the Secretary receives the application after July 1 of the 
        immediately preceding fiscal year.
    (b) Purposes.--
            (1) In general.--The purposes described in this subsection 
        are the following:
                    (A) Upgrading of industries.
                    (B) Development of new economic activity.
                    (C) Creation of opportunities for economic 
                diversification or revitalization.
                    (D) Alternative agricultural programs, including 
                products, facilities, and marketing ventures.
                    (E) Rural capital creation.
                    (F) Tourism.
                    (G) Technological linkages among educational 
                institutions, libraries, and businesses.
            (2) Excluded purposes.--The purposes described in this 
        subsection do not include the following:
                    (A) Planning by the applicant.
                    (B) Reimbursement of operating expenses of county 
                rural development boards or local governments.
                    (C) Reimbursement of costs associated with 
                application for a grant under this section or the 
                administration of grants made by county rural 
                development boards with funds provided under this 
                section.
    (c) Approval of Applications.--
            (1) In general.--Within 60 days after receipt of an 
        application submitted under this section, the Secretary shall 
        determine whether to approve or disapprove the application. If 
        the Secretary disapproves the application, the Secretary shall 
        provide the applicant with the reasons therefore and with 
        suggestions and recommendations for future applications for 
        grants under this section.
            (2) Factors to be considered.--In determining whether to 
        approve applications for grants under this section, the 
        Secretary shall give priority to those applications that 
        document at least 4 of the following:
                    (A) That the rural unemployment rate for the county 
                is greater than the national average unemployment rate 
                for the United States.
                    (B) That there is a significant level of rural 
                poverty in the county.
                    (C) That there is a record of rural environmental 
                degradation in the county.
                    (D) That there has been significant migration from 
                the county.
                    (E) That the percentage of adult residents of the 
                county with high school diplomas is less than the 
                national average of adults with high school diplomas.
                    (F) That the economy of the county is excessively 
                dependent on tobacco or any other single crop.
                    (G) That there has been a decline in the 
                manufacturing base of the county.
                    (H) How the proximity to, or the relationship or 
                economic linkages of the county to, a nearby central 
                regional urban core could be strengthened through the 
                projects proposed in the application so as to provide 
                local stability.
                    (I) A history of improvements and local commitment 
                to the educational, social, library, and financial 
                systems of the county.
                    (J) That the economy of the county is dependent on 
                a single industry.
            (3) Factors to be given greatest weight.--In determining 
        whether to approve applications for grants under this section, 
        the Secretary shall, subject to paragraph (4), give the 
        greatest priority to applications that demonstrate--
                    (A) community commitment to the projects proposed 
                in the application;
                    (B) a long-term strategy for rural development; and
                    (C) the ability of the county to achieve rural 
                economic and social improvement and stability.
            (4) Other requirements.--The Secretary may not approve an 
        application for grants under this section unless the 
        application demonstrates--
                    (A) that the applicant, the rural development 
                council of the State in which the applicant is located, 
                the substate regional organization in the region in 
                which the applicant is located, and 1862 and 1890 land 
                grant institutions in the State in which the applicant 
                is located have cooperated in--
                            (i) identifying regional methods of 
                        collaboration;
                            (ii) assessing and documenting the 
                        economic, social, and cultural connections 
                        between rural areas and metropolitan entities;
                            (iii) preparing regional resource 
                        assessments;
                            (iv) encouraging and developing--
                                    (I) collaborative efforts between 
                                the 1862 and 1890 land grant 
                                institutions and substate regional 
                                organizations in the State;
                                    (II) memoranda of agreement among 
                                such entities; and
                                    (III) methods for coordination and 
                                communication among such entities;
                            (v) developing methods of--
                                    (I) diversifying the rural economy;
                                    (II) dealing with outmigration of 
                                rural youth;
                                    (III) equalizing rural education to 
                                that received in urban areas;
                                    (IV) obtaining long term employment 
                                opportunities for low income, 
                                traditionally unemployed, seasonally 
                                employed, or underemployed rural 
                                residents; and
                                    (V) delivering effective job 
                                training services to local communities;
                            (vi) preparing an assessment of the capital 
                        needs, coordination, and financing of rural 
                        telecommunications and other rural 
                        infrastructure such as water and sewer;
                            (vii) developing a plan for the effective 
                        use and involvement of private sector resources 
                        and skills to deal with rural problems;
                            (viii) reviewing and recommending to the 
                        legislature of the State changes to State 
                        government programs, policies, or regulations 
                        which may impede effective rural development;
                            (ix) developing strategies for better 
                        coordination of rural development efforts among 
                        Federal, State, and local entities; and
                            (x) designing the projects proposed in the 
                        application;
                    (B) that the rural development projects proposed in 
                the application are to be carried out in partnership 
                with the rural development council of the State in 
                which the applicant is located, the substate regional 
                organization in the region in which the applicant is 
                located, and such 1862 and 1890 land grant institutions 
                (acting in consultation with local offices of the 
                Agricultural Extension Service) as suggest a 
                multidisciplinary approach to methods of project 
                evaluation and assistance with a particular emphasis on 
                development of a new and expanded community service 
                role for college and university departments of 
                agriculture with emphasis given to social and economic 
                assistance;
                    (C) that the county in which the applicant is 
                located is able to begin implementation of the projects 
                within 3 months after receiving a grant under this 
                section, and fully implement the projects within 18 
                months after such receipt; and
                    (D) how the funds provided to the applicant under 
                this section are to be used to obtain funding from 
                other sources on an ongoing basis.
            (5) Fiscal year 1996.--The Secretary may not, after 
        September 15, 1996, approve an application for grants under 
        this section for fiscal year 1996.
            (6) Coordination of multicounty projects.--
                    (A) In general.--In the case of an application for 
                grants under this section that provides for a rural 
                development project which is to be coordinated between 
                or among 2 or more applicants for such grants, the 
                Secretary shall make the coordination of the activities 
                of such applicants a condition of approving the 
                application.
                    (B) Technical assistance.--The Secretary shall 
                provide such technical assistance as may be required to 
                assist counties in coordinating the planning, funding, 
                and implementation of rural development projects 
                referred to in subparagraph (A).
    (d) Grant Authority.--If the Secretary approves an application for 
grants under this section, the Secretary shall--
            (1) make a grant to the applicant in an aggregate amount 
        equal to 80 percent of the total amount of the grant;
            (2) make a grant to the land grant institutions identified 
        in the application, in an aggregate amount equal to 10 percent 
        of such total amount;
            (3) make a grant to the State rural development councils 
        identified in the application, in an aggregate amount equal to 
        6 percent of such total amount; and
            (4) make a grant to the substate regional organizations 
        identified in the application, in an aggregate amount equal to 
        4 percent of such total amount.
    (e) Maximum Amount of Grant.--The amount of each grant made under 
this section with respect to an approved application shall not exceed 
$1,000,000.
    (f) Term of Grant.--
            (1) In general.--The Secretary may make grants under this 
        section with respect to an approved application for not more 
        than 3 years.
            (2) Multiyear grants.--The Secretary may make a grant under 
        this section to a qualified county rural development board for 
        a period of more than 1 year if the management capacity of the 
        board, the level of needs documented by the board, and any 
        necessary phasing-in of the project are such that multi-year 
        funding is necessary.
    (g) Use of Grant.--Each entity to which a grant is made under this 
section shall use the funds in accordance with the approved application 
for the grant.
    (h) Administrative Provisions.--Not later than February 1, 1996, 
the Secretary shall--
            (1) publish in the Federal Register a detailed announcement 
        of the grant program authorized by this Act, and a schedule of 
        activities of the Department of Agriculture to meet the goals 
        and requirements of this Act;
            (2) notify State rural development councils and train State 
        rural development coordinators about the grant program, 
        schedule regional workshops for county rural development boards 
        and officials, and establish a clearinghouse of rural 
        development ideas and information available to county rural 
        development boards.
    (i) Reports.--
            (1) Regular reports.--Not less frequently than annually, 
        each county rural development board that receives a grant made 
        under this section shall submit to the Secretary a report that 
        documents the continued involvement of the public in the 
        activities of the board, and includes such information as the 
        Secretary may require to determine whether the projects 
        proposed in the approved application of the board are 
        progressing as described in the application toward the goals 
        set forth in the application.
            (2) Final report.--Upon the completion of the projects 
        described in an approved application for a grant under this 
        section, the applicant shall submit to the Secretary a final 
        report on the projects.
    (j) Audits.--The Secretary shall require each entity that receives 
a grant made under this section to perform annual audits of the 
financial management system and internal controls of the entity.
    (k) Maintenance of Records.--Each entity that receives a grant made 
under this section shall maintain records and accounts sufficient to 
enable a determination as to whether the grant has been used in 
accordance with the approved application and the requirements imposed 
by or under this section.
    (l) Definitions.--As used in this Act:
            (1) Qualified county rural development board.--The term 
        ``qualified county rural development board'' means a rural 
        development board that is established in accordance with the 
        following requirements:
                    (A) The board is an agency of county government.
                    (B) The county for which the board is established 
                does not contain a city with a population of more than 
                35,000 individuals.
                    (C) The board has not less than 7 and not more than 
                15 members.
                    (D) Not more than 50 percent of the board members 
                may be appointed by the county.
                    (E) The membership of the board is fully 
                representative of the population of the county.
                    (F) The meetings of the board are required to be 
                open to the public, the board is required to notify the 
                public not less than 7 days and not more than 21 days 
                in advance of board meetings, the board is required to 
                keep minutes of its meetings, and the board is required 
                to afford the public an opportunity to comment at board 
                meetings.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (3) Substate regional organization.--The term ``substate 
        regional organization'' means a substate regional multicounty 
        planning and development entity.
    (m) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Secretary 
not more than--
            (1) $20,000,000 for fiscal year 1996; and
            (2) $40,000,000 for each of fiscal years 1997 and 1998.

SEC. 3. NATIONAL TRAINING PROGRAM.

    The Secretary shall create a training and information system 
utilizing 1862 and 1890 land grant institutions, the Agricultural 
Extension Service, State rural development councils, and substate 
regional organizations, which shall include--
            (1) advice and materials on local rural strategic planning 
        processes and procedures, which shall include how to study 
        local economies, identify local strengths and weaknesses, 
        develop opportunities, profile resources, and identify the 
        competence and availability of the labor force and of local 
        education;
            (2) creation of a significant resource library readily 
        available to qualified county rural development boards 
        featuring comparative case studies, Federal and State resource 
        guides, and nonprofit and community based development 
        organization guides;
            (3) advice and guidance on how to facilitate citizen 
        involvement in the planning and implementation of rural 
        projects with respect to which grants are made under section 2;
            (4) techniques and methods to encourage regional economic 
        cooperation;
            (5) leadership training;
            (6) provision of detailed information and strategies for 
        development potential of various industries including 
        agriculture, timber, mining, tourism, and manufacturing, with 
        emphasis on the use of advanced technologies and processes and 
        on adding value to raw materials and component parts;
            (7) financial information and advice on implementing 
        projects using grants, banks, venture capital companies, 
        revolving loan funds and other methods of leveraging funding; 
        and
            (8) a training and information network linking together 
        qualified county rural development boards and State rural 
        development councils for continued support and information 
        sharing.

SEC. 4. NATIONAL RURAL DEVELOPMENT GOALS; EVALUATIONS; REPORT TO THE 
              CONGRESS.

    (a) Rural Development Goals.--Not later than July 1, 1996, the 
Secretary of Agriculture shall publish in the Federal Register a 
statement of national rural development goals, and shall provide for a 
period of public comment on such goals.
    (b) Evaluations; Report to the Congress.--Not later than October 1, 
1999, the Secretary shall submit to the Congress a report that 
evaluates the activities engaged in under this Act and includes 
recommendations as to the desirability of expanding the activities.
                                 <all>
HR 5086 IH----2
```